Bank of England Policy Makers Signal U.K. Stimulus May Be Curtailed Soon

• Bank of England policymakers signaled that stimulus measures may have to be trimmed back soon to keep inflation from overheating. Recently data showed that the inflation rate in the U. K has surpassed the 2% benchmark and is at 2.5%. 
• Micheal Sanders a British economist and an external member of the Bank of England's Monetary Policy Committee indicated that the Bank of England may have to consider curtailing its stimulus program “in the next month or two” to contain inflation as the economy rebounds. 
• Saunders’ comments suggest that the Monetary Policy Committee will have to debate an early end to the 150 billion pound ($208 billion) bond purchase program, a move that would put the Bank of England in the vanguard of global central banks withdrawing stimulus. His remarks stood out against the previous position of the Bank’s policymakers led by Governor Andrew Bailey, who has described some of the surges in inflation as “temporary.” 
• Saunders’ highlighted that both the labour market and the economy have been recovering which suggests that inflation may remain well above the target in two or three years unless the Bank of England acts. 

(Source: Bloomberg)